KOKOMO, IN -- Federal, state and local leaders joined hundreds of Delphi employees today to break ground on the company's $25 million expansion here. 

At a groundbreaking celebration for two new buildings near the world headquarters of Delphi's Electronics & Safety division, president Jeff Owens noted the significance of the project and acknowledged the transition that occurred over the last few years as Delphi responded to economic conditions.

"Delphi is now well-positioned for the future. We are stronger than ever and investing in our future," Owens said. "With this investment, Delphi Electronics & Safety is consolidating its Kokomo engineering team into two Kokomo locations -- the Corporate Technology Center property on East Lincoln Road and the manufacturing facility it opened earlier this year on Morgan Street with the support of the U.S. Department of Energy.

"We have tremendous resources in Kokomo -- in our facilities and, most especially, in our people -- and Delphi is investing in resources that are critical to its future growth, to include power electronics, active safety, advanced infotainment, connectivity solutions, and powertrain electronics," Owens said.

The project includes construction of a 70,000-sq. ft. laboratory to support high-technology development and validation activities, with a focus on power electronics components for hybrid and electric vehicles, and a 10,000-sq. ft. utility building to support the utility needs of the East Lincoln Road complex. Both buildings are expected to be occupied and operational by the end of 2011. Infrastructure improvements at the Kokomo Morgan Street facility also will support the high-voltage requirements of the power electronics line.

This investment follows, and complements, the announcement last December of a planned joint investment by Delphi and the DoE of more than $178 million to expand Delphi's U.S. power electronics manufacturing in Kokomo.